JM Financial's share price fell more than 9% in early trade on Monday after capital markets regulator Securities and Exchange Board of India (SEBI) barred the company from acting as lead underwriter for initial public issue of bonds. did. JM Financial shares fell by up to 9.82%. INR79.30 per piece on BSE.
JM Financial's share price has fallen over 17 per cent in the past week following the Reserve Bank of India's (RBI) sanctions against one of its group companies and this latest Sebi order.
Sebi found several serious lapses at JM Financial when it served as lead manager for certain public affairs.
Read here: Sebi blocks JM Financial from taking new assignment due to lapse in debt issue
However, in terms of existing powers, Sebi's March 7 order said JM Financial could act as lead manager for the public issue of bonds for a period of two months.
The regulator has given JM Financial the freedom to file a reply/objection in this regard within 21 days.
However, JM Financial said it would fully cooperate with the capital markets regulator's investigation into the public issuance of the bonds.
“We will fully cooperate with Sebi in this investigation,” JM Financial said in a filing with the exchanges.
Read here: JM Financial announces full cooperation with SEBI in investigation into public issue of bonds
Regulators have launched an investigation into these matters, which is expected to be completed within six months.
On March 5, RBI imposed an immediate ban on JM Financial Products, one of its other group companies, from providing loans against stocks and debentures, including sanctioning and disbursing loans against initial public offerings (IPOs) of shares. did.
The banking regulator's action was taken against the background of certain serious deficiencies observed in the company's lending process. RBI had also highlighted serious concerns about governance issues in financial services companies, besides non-compliance with regulatory guidelines.
As of 9:50 a.m., JM Financial Services shares were trading down 7.65%. INRFor BSE, 81.21 cases per case.
Catch live stock market updates here
Unlock a world of benefits! From insightful newsletters to real-time inventory tracking, breaking news and personalized newsfeeds, it's all here, just a click away. Log in here!
